Coffee Market Study

One third of Papua New Guinea’s population, about 400,000 families, depend on growing and processing coffee.

A new study by the Pacific Horticultural and Agricultural Market Access (PHAMA) Program describes an 11% decline in production from 2010 through 2016. Output, which historically exceeded 1 million 60-kilo bags, has fallen below that threshold with 15% less coffee from larger plantations.

Due to quality concerns, exports trade at prices that average 12.7% below commodity baselines.

“There is no lack of demand for high-grade coffee from PNG,” writes principal author Andrew Hetzel. “Supply is the primary constraint. PNG retains a favorable overall impression among older specialty buyers, who indicate they can purchase as much coffee meeting their standards as the country can produce.

“The potential exists to introduce PNG as a specialty origin to younger professionals and consumers, who are the future of the industry,” according to the study.